how does d value of gold changes each n every day... and how does it affect share market?

Answer 1

OK you've got the answer for the fluctuation of gold prices. As for the share market whenever the gold price rises dramatically the shares in the mining companies shoot up and vice versa. That means buying shares in a gold mining company bears the same risk as buying gold i.e. they both go up and down together if all other things remain the same.

Answer 2

From the 1800s to 1975 the price of gold and gold coins remained fairly steady at $19 to $21 US. In 1975 the gold standard was removed and this contributed to the increased fluctuations in the price of gold.

The dollar was originally pegged to gold in March 1900 and the dollar was then ‘backed’ by “twenty-five and eight-tenths grains (1.67 g) of gold nine-tenths fine”, and was set as the standard unit of value. The value was then set at $20.67 per ounce of gold. Consequently there was little movement in the value of the dollar, being pegged to a stable metal. The dollar, and the economy was fairly stable for many years.

In 1975 the United States floated the dollar with respect to both gold and other currencies. With this the United States was, for the first time, on a fully fiat currency and the dollar was no longer pegged to gold and there was, in effect no gold standard. Today the dollar, like the currency of most nations, is fiat money without intrinsic value, which means that it has no backing and would be entirely worthless but for the fact that people have been persuaded to use and accept it as if it had worth.

After the gold standard was dropped the value of gold shot up to peak at over 640 dollars per ounce in 1980 before settling in the 300 to 500 range which it now occupies. The economy also suffered with waves of inflation and recessions. It has continued to do so ever since.

Gold, however, continues to have value and although the ‘price’ fluctuates more due to the manipulation of the dollar than anything else, the value of gold remains stable.

So, in point of fact, it could be considered that the value or price of gold is not changing. Only the dollar value subscribed to it is changing, depending on the fluctuations of the value of the dollar and the vagaries of the political, and economic climate.

It pays therefore to invest in gold and gold coins.

Answer 3

Gold in india is consudered to be a commodity only. but outside india throughout the world its a Currency. It is dealt almost for 20 hours daily throughout the world. Gold fluctuates over Geopolitical tensions, Minning problems, demand and supply change and now a days much is due to international speculation. All it has to do with the share or equity markets is that whenever the is a geopolitical tension stocks, bonds and indexes jump down due to untercertainity and gold the global currency jumps higher. bcoz fall in the economy of a countrys market is a fall in the value of the currency of that country and so gold which is a global currency gains at pricing.

Answer 4

Bullion market - where the precious metals like - Gold, Silver and others get traded

Share Market - where equity shares are traded in either BSE / NSE.

There are no linkages betwen the gold price movements on the Equity markets.

Answer 5

The value of gold changes every day because of supply and demand (trading). Certain currency's are underpinned by the gold standard.

Answer 6

it is b'long to the doller rate.when the doller rate is high.the gold rate will down.like when the gold rate is high the stock market will down.